Business Loan Basics - v13 (Video) (Course Id 2184)

• Who is this course for?
  This course is for anyone needing Continuing Professional Education (CPE), particularly CPAs, accountants, or professionals interested in understanding business loans and financial statement presentation.

• What is this course about or what problem does this course solve?
  This course provides foundational knowledge on business loans, including when loan funding is needed, how loans are structured, and how to manage and account for them effectively.

• How can the knowledge from this course be used?
  The knowledge can be applied to analyze loan needs, prepare and review loan applications, understand key loan terms and documents, and account for loans accurately in financial statements.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  It equips professionals with insights into bank loan decision-making, financial disclosures, and accounting entries, enhancing their ability to advise clients or manage internal finances.

• When is this course relevant or timely?
  This course is relevant whenever a business is considering financing options or needs to better understand loan-related financial reporting—especially useful in dynamic economic environments where credit management is crucial.

• How is a course like this consumed or used?
  The course is delivered via QAS self-study through video and text, with review and final exam questions, and can be completed entirely online at the participant’s own pace.

Business loans are a vital source of funding for cash flow management. The business loan basics course begins with ratio analysis and cash flow projections to determine whether loan funding is needed. I then explain how leverage (the use of borrowed funds) magnifies returns but increases risk.

We’ll then explore key loan components like different ways interest is calculated, types of fees, and the multiple terms that can be structured into a loan. Basic accounting entries and financial statement presentation, including footnote disclosure, are explained.

You’ll discover ways to reduce the interest rate on your loan. I’ll give an overview of the application process and the documents lenders frequently request.

The business loan training course explains the factors and ratios banks use to decide whether to approve a loan. Key documents that are signed at loan closing are described, and the importance of each is explained. I’ll point out important clauses included in these documents.

The author has 20 years of banking experience, including being CFO of two banks, sitting on loan committees, and having a collections department report to him. He provides insights into how banks operate, key terms borrowers miss, and tips to protect you or your client’s business.

Video - NASBA QAS - Text - NASBA Registry - 2184

Course Learning Objectives

• Explore different types of business loans
• Recognize key loan terms and their definitions
• Identify key loan documents
• Discover loan accounting and financial statement presentation

Chapter 1 - Business Loan Basics

Chapter 1 Review Questions

Glossary-Index